According to FedEx “global is the new local”
In a surefire example of how globalization and Ecommerce are changing the world of business, FedEx has released a research report titled ‘Global is the New Local: The Changing International Trade Patterns of Small Businesses in Asia Pacific’. The report documents the sudden increase in payment and delivery in small to medium size businesses (SMEs) from the Asia Pacific (APAC) region. For example, APAC SMEs now export to non-local regions 254% more frequently than they did four years ago, and 71% of them export outside APAC itself. That’s a massive shift in just a few years!
FedEx’s share price has increased by 2% over the last 5 days
Source: Yahoo Finance
Karen Reddington, president of FedEx Express Asia Pacific, said: “The global footprint of APAC SMEs is bigger than ever. This growth momentum is expected to stay as the majority of APAC SMEs believe that they will continue to or increase their exports and imports beyond the region in the next 12 months. We are pleased to see that more SMEs are growing their business beyond Asia Pacific with an increasing need for more sophisticated logistics solutions.”
She also noted that exports outside of APAC had hit the same level as exports within the region (in fact, slightly overtaken, at 71% and 70%, respectively). Perhaps more importantly, the content of imports and exports these companies are making have evolved – professional services and designs now make up a considerable proportion, “which suggests an increasingly prevalent borderless online marketplace.”
The study, which was carried out for FedEx by independent researchers at Harris Interactive, drew its conclusions from interviews with 4,543 senior executives from 9 markets in APAC – and it paints a bright picture of the evolution of business in the region.
Dominion holds FedEx in its Global Trends Ecommerce Fund.
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